Tag Archives: uranium

Boss looks for opex, production boost at Honeymoon uranium project with NIMCIX transition

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Boss Resources has announced plans to evaluate the replacement of the existing solvent extraction (SX) columns on the Honeymoon uranium mine site, in South Australia, with new NIMCIX columns.

Initial results from test work indicate the potential for this to increase production profile and reduce operating costs for the project, Boss said.

The NIMCIX contactor is a continuous ion exchange (IX) column developed by Mintek (then the National Institute for Metallurgy – NIM) during the uranium boom of the 1970s and 1980s. A notable breakthrough, it enabled uranium to be recovered from unclarified solutions, according to Mintek.

Following a January 2020 feasibility study on Honeymoon, the company has embarked on technical optimisation studies which included completing NIMCIX IX process detail design and testing. In August, cost saving results from a GR Engineering review relating to reduced site power demand and transmission line upgrade costs were announced.

These savings, along with the NIMCIX results have incentivised Boss to initiate an Enhanced Feasibility Study (EFS) to incorporate the potentially significant enhancements identified, it said.

Boss’s restart and expansion plans have been split into separate stages, of which Stage 1 and 2 are presented as the base case for the Honeymoon feasibility study, showing that production can recommence within a 12-month period. Stage 1 development focused on the restart of the existing SX plant, which has a nameplate capacity of 880,000 lb/y U3O8-equivalent. Stage 2 is an expansion strategy that will increase production to 2 Mlb/y U3O8-equivalent and involves the construction of a new IX circuit.

Additional work has now been completed by Boss, ANSTO and GR Engineering examining the potential to replace the existing SX columns on site with new NIMCIX columns.

Boss said: “The results show that it is entirely possible to eliminate the envisaged Stage 1 and incorporate a NIMCIX system with the following stipulations:

  • “The flow rate through the new NIMCIX columns must be equivalent to or higher than the SX system;
  • “The lead time to commissioning should not be significantly impacted;
  • “The overall project capital expenditure intensity should not be impacted; and
  • “As much of the current SX structural and process infrastructure as possible to be re-used.”

The conclusion of this review is that these criteria are achievable and highlighted the potential for lower unit operating cost and higher production rates over the life of mine, according to Boss.

Additional potential benefits of the conversion include:

  • Significantly higher throughput through the plant during Stage 1 and beyond;
  • Improved safety outcomes through the elimination of combustible solvents in process;
  • Improved environmental outcomes through elimination of the potential for organic entrainment to the wellfield; and
  • Simplification of the process through standardisation of uranium extraction technology.

“The company now plans to incorporate both the IX Process Optimisations announced previously and the pure NIMCIX adoption into an EFS level estimate for the Honeymoon uranium project restart to assess the economic impacts of these changes,” it said.

It has re-engaged GR Engineering Services as the engineering and lead study consultant for its EFS leveraging on the recently completed feasibility study completed in January 2020.

“Through the EFS, Boss aspires to increase the ramp up production schedule and nameplate capacity of Honeymoon through the adoption of a wholly IX (NIMCIX) system with the first stage of production ramp up delivered within the original 12-month delivery timeline from an investment decision,” it said.

Vimy senses Angulari gold-uranium project boost following TOMRA XRT trial

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Ore sorting test work from TOMRA Sorting Australia has Vimy Resources thinking about higher grades, lower capital and operating costs, and the production of precious metals at its majority-owned Angulari uranium-gold deposit in Australia’s Northern Territory.

The ASX-listed company, which has defined an inferred mineral resource estimate of 26 Mlbs of U3O8 (0.91 Mt at 1.3% U3O8) at Angulari, already thought the deposit, part of the Alligator River project, had potential to fit into the first quartile of the global uranium cost curve, but now it has eyes on further improving its cost position.

An ore sorting proof of concept trial conducted by TOMRA using its COM X-ray Transmission Tertiary system factored in a 41.5 kg sample that was obtained from mineralised material collected from drill core that Cameco Australia drilled in 2011 and 2016.

The trial on this material saw the uranium concentrate grade increase from 1.2% to 2% U3O8 (70% increase) with high U3O8 recovery. Alongside this, the sample gold concentrate grade increased from 0.7 g/t to 1.1 g/t (47% increase). On the latter gold work, Vimy said: “This warrants further investigation given no gold processing or recovery test work has been undertaken to date.”

The test work also showed that gold mineralisation is spatially coincident with the uranium mineral resource within the sample.

Some 13.5 kg of this 41.5 kg sample was not sorted due to the high uranium grade, which provides additional upside in future trials, Vimy noted. Other potential by-products were also identified, including platinum and palladium.

All of this bodes well for cutting the capital and operating costs that Vimy was unable to disclose to investors as part of its December 2018 scoping study on the project.

A higher feed grade from ore sorting would likely result in lower operating costs, the company said.

Meanwhile, smaller hydrometallurgical plant circuits would likely be required for the same level of production. Coupled with a potential reduction in acid-consuming phases in the concentrate, ore sorting has the potential to lower reagents (and water) usage and costs on a per lb U3O8 produced basis, noting that expected reagent use is already low, Vimy said.

“A smaller plant would result in a lower overall disturbance footprint with commensurate approvals and capital cost benefits,” it added.

Mike Young, CEO of Vimy, said, “The results of the TOMRA ore sorting trial at the Alligator River project’s Angularli deposit have exceeded our expectations. The high-grade nature of the deposit, coupled with the ore sorting outcomes, enhances the prospect of Angularli’s potential future development as a low-cost uranium operation.

“Our next step is to progress the upgrade trials and investigate the potential for the recovery of high value by-products associated with the uranium mineralisation at the Angularli deposit.”

The Angularli deposit is located in the King River-Wellington Range tenement group which is managed in a joint venture (Vimy 79%: Rio Tinto 21%) with Rio Tinto Exploration Pty Ltd, a wholly owned subsidiary of Rio Tinto Ltd.

GR Engineering comes up with cost savings at Boss’ Honeymoon uranium project

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GR Engineering Services has reviewed the latest technical optimisation studies related to the restart of the Honeymoon uranium mine, in South Australia, and come up with capital expenditure savings of $6.3 million for owner Boss Resources.

Following the release of the feasibility study in January 2020, Boss embarked on technical optimisation studies which included completion of an identified ion exchange (IX) process detail design and testing, undertaken with the Australian Nuclear Science and Technology Organisation (ANSTO).

The January feasibility study highlighted a capital expenditure of $63.2 million (excluding offsite power provider upgrades) to build the two-stage mine. Stage 1 consisted of refurbishing the existing solvent extraction plant with process improvement to a capacity of 880,000 Ib/y of U308 equivalent, while Stage 2 involved adding an IX circuit to achieve annual production of 2 Mlb/y. This also estimated an average all-in cost of $32.3/lb U308 over the life of mine.

The IX process optimisation program with ANSTO aimed to remove the requirement for solution heating in the elution of uranium from the IX resin. Power input to the elution process necessitated upgrades to the transmission line to service Honeymoon with grid power from Broken Hill, 80 km southeast of the mine.

Boss devised a series of tests in consultation with ANSTO to study the effect of ambient temperature on both the conversion and elution performance, with the conversion work indicating an ambient temperature process could achieve the required conversion performance within the timeframe in the process design.

Furthermore, a 45% reduction in reagent concentration in the conversion process had a negligible effect on conversion performance and offered significant reagent savings, Boss noted.

Test work on the elution process was also successful, the company said. “While there is a small difference in the eluant requirement to achieve complete elution of the resin, there is sufficient capacity in the elution circuit as designed to achieve this without impacting the downstream processes, while facilitating significant energy savings,” it explained.

The remainder of the program aimed to provide additional information to allow detailed equipment design for IX adsorption and elution processes. As a result of this work, Boss made additional changes to the resin sulphation and regeneration processes, which could represent additional cost savings.

Boss commissioned GR Engineering to evaluate the cost implications of the above work on the feasibility study results, initially on a +/- 25% basis, with initial results confirming a capital expenditure reduction of $6.3 million owing to the reduction in heating and insulation requirements for the elution circuit and reagent make up systems, and the reduced transmission line upgrade costs.

Additionally, the engineering company identified the reduction in electricity costs alone represented an operating cost saving of $2.4 million/y, equating to $1.22/lb U308 equivalent.

GR Engineering is now undertaking an evaluation of the operating cost implications of these changes in Stage 2 operations over the life of the overall operation considered in the feasibility study.

“Boss designed the feasibility study to fast-track production from Honeymoon’s existing solvent extraction plant within a 12-month period, following a decision to mine, to capitalise on any improved market fundamentals,” the company said.

It plans to increase production to 2 Mlb/y U308 equivalent through the addition of the IX plant, which will take around 20 months to design, construct and commission.

Boss Resources Managing Director and CEO, Duncan Craib, said: “Boss continues to work on opportunities to optimise Honeymoon as a first-mover uranium restart operation – this outstanding IX test work result is one example.

“We will continue working towards net present value accretive technical advancements and revising estimates contained within the January 2020 feasibility study, strengthening Honeymoon’s potential to be one of the lowest cost uranium producers globally.”

Following these initial results, Boss plans to incorporate these optimisations into a revised feasibility study level estimate for the Honeymoon restart which will also incorporate other initiatives including the conversion of the current solvent extraction infrastructure to a NIMCIX IX system, Boss said.

In parallel, Boss’s exploration team is completing a comprehensive desktop review of the extensive historical exploration database information to define new uranium exploration targets.

“With financial support from the South Australian government to utilise innovative uranium geophysical exploration techniques, exploration is focusing on expansions to known uranium discoveries to increase Honeymoon’s production profile distal to existing JORC mineral resources (total 71.6 Mlb U308),” the company said.

It is envisaged that these new mineralised target areas will form the basis of a study to assess and define Stage 3 production ramp up to produce more than 3 Mlb/y U308 equivalent, Boss said.

BHP Olympic Dam looks for value in SciDev wastewater treatment solution

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SciDev has received a trial purchase order for its MaxiFlox chemistry from BHP’s Olympic Dam polymetallic mine, in South Australia, which will see the company transfer its waste processing expertise to the production side, Lewis Utting says.

Australia’s largest copper operation, Olympic Dam operates a fully integrated processing facility from ore to metal.

The SciDev trial, which includes an initial A$1 million ($717,526) purchase order for the MaxiFlox chemistry, reflecting about three months of consumption, is expected to start by the end of the year and last around six months. It will focus on the use of SciDev’s chemistries in the hydromet and concentrator sections of the processing plant, SciDev said.

SciDev’s South Australia-based staff will be on site to deliver the associated professional services.

SciDev Managing Director and Chief Executive Officer, Lewis Utting, said the order represented a significant opportunity for SciDev.

“The opportunity to transfer our chemistry and knowhow from the waste processing side directly to the production side of a mining operation reflects the potential for the company’s bespoke chemistries,” he said.

The Olympic Dam mine produced 171,600 t of copper cathode in the year to June 30, 2020, 7% higher than the same period a year earlier, alongside 145,972 oz of refined gold, 984,000 oz of silver and 3,678 t of uranium (all of which was from a concentrate).

MaxiFlox, meanwhile, is specifically designed for the treatment of wastewater across several industries, SciDev says. Products in the MaxiFlox range are supplied in both liquid and powder form across an extensive range of molecular weights and charge densities to solve industrial challenges.

The MaxiFlox chemistries are also being used in the tailings thickener at the Las Bambas copper mine, in Peru, following a trial purchase order from mine owner MMG.

Energy Fuels buys up Prompt Fission Neutron tech in preparation for US uranium revival

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US-based Energy Fuels Inc has entered into an agreement to acquire the Prompt Fission Neutron (PFN) technology and equipment, including all its related intellectual property, from GeoInstruments Logging LLC.

The deal will give the uranium producer the exclusive right to use, licence, and service this particular PFN technology globally, which Energy Fuels says is critical to successful uranium production, particularly from many in-situ recovery (ISR) deposits, as it more accurately measures downhole in-situ U3O8 (uranium oxide) ore grade, versus traditional Total Gamma and Spectral Gamma methods.

The PFN equipment and technology to be acquired by Energy Fuels includes four PFN tools; nine gamma tools with point resistivity, spontaneous potential and deviation; two low-mileage, heavy-duty logging trucks with logging and associated equipment; power supplies, computers, communication, and other technology; and all associated intellectual property, including all internal details of the tools, circuit board diagrams, firmware code, software, manuals, instructions, patents and the sole right to utilise and licence the acquired PFN technology globally.

The total consideration to be paid by Energy Fuels to GIL will be $500,000 in cash, with closing of the transaction expected to occur within around two weeks, after completion of a due diligence inspection of the equipment.

Energy Fuels currently has some PFN equipment in various states of repair, which it has used for its mining operations in the past, as do other companies in the US and around the world.

“With the acquisition of this additional PFN equipment and technology from GIL, Energy Fuels will not only be able to utilise the additional equipment to ramp-up production from its ISR properties more quickly and efficiently in the event of improved market conditions, it will also secure the ability to service, repair and maintain PFN equipment currently held by the company and others, as well as licence this technology to others in the future,” it said.

PFN technologies have played an important part in discovering, and bringing to production, some of the best uranium deposits in the world, according to Energy Fuels, including the Beverly and Four Mile uranium mines currently operating in South Australia. Energy Fuels’ Alta Mesa ISR project in South Texas, which produced nearly 5 MIb of U3O8 between 2005 and 2012, also deployed PFN technology while in production, the company said.

Many geologically younger ISR uranium deposits in the US, and particularly Texas, have a certain degree of disequilibrium, whereby the radioactivity measured in drill holes using traditional Total Gamma and Spectral Gamma methods does not accurately correspond to ore grade, due to the continued decay of uranium daughter products including potassium, thorium, lead and bismuth relative to radium, a significant gamma emitter, according to Energy Fuels.

“Traditionally, disequilibrium is calculated using mud rotary coring techniques and laboratory gamma and alpha spectrometry; all of which are expensive and time consuming,” it said. “Without accurate in-situ measurement of uranium, significant high-grade ore has been missed using the traditional downhole techniques.”

PFN technology solves this issue, Energy Fuels says, by instead using neutron activation to detect uranium in drill holes. The PFN tool creates very fast neutrons (14 MeV) and fires 108 neutrons per second. Therefore, the neutrons emitted by the PFN tool excite, at an atomic level, in-situ uranium atoms in the drill hole, creating fast (epithermal) neutrons and slow (thermal) neutrons.

The ratio of epithermal to thermal neutrons is proportional to uranium, allowing the U3O8 ore grade to be accurately calculated, according to the company. This provides a relatively inexpensive and instantaneous means for accurate assaying in-situ ore grades over large areas, while allowing for accurate orebody mapping, resource estimation, and wellfield planning, it said.

Mark Chalmers, President and CEO of Energy Fuels, said the acquisition will further solidify the company’s position as the leading uranium miner in the US, especially in the ISR space.

“We believe that acquiring PFN technology is now more important than ever, as we believe a revival of the US uranium industry is imminent,” he said.

On April 23, the US Nuclear Fuel Working Group (NFWG) described why the US needs healthy uranium and nuclear fuel industries in order to secure US energy and national security and prevent Russia, China and other geopolitical rivals from gaining control of global – and US – nuclear markets, he said.

“We believe the NFWG report represents the strongest US government commitment to supporting US uranium miners in decades,” Chalmers said.

The NFWG report also provided actions the US government can take to support domestic uranium mining, including creating a US uranium reserve, and potentially increasing the size of the American Assured Fuel Supply, according to Chalmers.

“In response to the NFWG Report recommendations, President Trump has already announced a budget that seeks $150 million per year over the next 10 years (totalling $1.5 billion over that timeframe) to establish a strategic uranium reserve intended ‘to provide additional assurances of availability of uranium in the event of a market disruption’,” he said.

NRW Holdings to upgrade Olympic Dam airport

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NRW Holdings’ wholly-owned subsidiary, NRW Contracting, has been awarded an airport upgrade contract with BHP at its Olympic Dam copper-gold-uranium project, in South Australia.

The scope of works includes two separable portions:

  • Airside works – includes bulk earthworks, pavement construction and drainage works for the construction of a new 1,860 m long runway and refurbishment of the existing taxiway and extension of the apron areas; and
  • Landside works – includes reinforced concrete works, structural steel and modular structures and all services for the upgrade of the existing terminal building and the surrounding infrastructure.

The new contract value is circa-A$48 million ($28 million) and is expected to have a duration of around 37 weeks with works commencing in late March.

The project will have an expected peak workforce of around 140 (including subcontractors), according to the company.

NRW’s CEO and Managing Director, Jules Pemberton, said: “NRW is delighted to be awarded this contract at Olympic Dam following the successful acquisition of the BGC Contracting business.

“NRW has a long history with BHP in their iron ore, coal and nickel divisions but this contract marks the first project for the copper operations. I look forward to the safe and successful execution of the works.”

Belzona provides long-term protection at Australia uranium operation

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Belzona has helped a uranium mining operation in Australia protect its exchange vessels using corrosion resistant epoxy coatings and repair composites.

The operation, which uses a unique extraction technology to produce high purity uranium, was after a solution with good chemical resistance that was able to withstand high operating temperatures after, a planned upgrade revealed issues with the existing rubber lining of the exchange vessels.

The lining failure had caused corrosion of the steel substrate (which had continued to go unnoticed behind the rubber) and now had the potential to severely impact production and ultimately shut them down completely, according to Belzona.

“The exchange vessels measure at around 2.5 m in diameter and 5 m in height and are considered the lifeblood of their business,” Belzona said. “The process conditions meant that there was a strong chemical presence and high operating temperatures further contributing to the corrosion of the lining.”

Two of the vessels were able to be viewed, due to being out of service, helping to understand the process conditions.

The existing rubber internal lining had to be removed using a high temperature, ultra-high-pressure jet water operating at 150°C and 40,000 psi pressure. This stripped back the rubber lining, leaving a bare steel shell with only small amounts of rubber remaining. This was then whip blasted and any sharp angles, burrs and weld defects were identified and prepared to a minimum R5 radius suitable for coating, according to Belzona.

Following on from the pre-surface preparation, the vessel was degreased using high-pressure water jetting at 6,000 psi followed by a solvent wash using MEK before being blasted.

Before the new internal linings were applied, nozzle inserts were fitted with a stripe coat of Belzona 1391T to the circumferential welds and bracket details. Nozzle inserts manufactured using Belzona 1511 (Super HT-Metal) were initially dry fitted into the appropriate nozzle where they were then marked and cut to size before being bonded in place using Belzona 1391T.

Small areas of pitting around the welds were filled at the same time and allowed to cure. After the required length of time and within the overcoat window of Belzona 1391T, the stripe coat was applied to the welds and large nozzles. Spraying of the new internal linings began once the stripe coatings were cured.

Belzona said: “To provide a full turnkey solution without any delays, blasting of the second vessel began whilst the first vessel was being coated. The original coating was then left to cure overnight with a second coat to follow the next day. Heat was applied to the vessels to assist in providing a fast cure time and return to service.”

Thanks to effective time management throughout, the overall application was able to be completed very quickly, with each vessel taking a few days to complete, Belzona said. The vessels have now gained long-term protection against corrosion and a longer service life.

QM Points to rehabilitate former uranium mine in Saskatchewan, Canada

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QM Points Contracting has entered into an agreement with the Saskatchewan Research Council to complete the Gunnar Mine – Other Site Aspect Remediation project in the Canadian province.

This agreement represents one of the remaining major phases to reclaim the Gunnar mine site that was closed in 1964 without proper decommissioning, it said. As a result of the agreement, the site will be remediated to a level to allow reestablishment of vegetation and traditional uses of the land. It will also result in training, employment and subcontracting opportunities for local community members, as well as other benefits to the region including bursaries for students and community enhancement projects, QM said.

QM Points is a partnership between QM Environmental and Points Athabasca Contracting, with the partnership specialising in environmental contracting activities in Saskatchewan and beyond. QM Environmental is a national environmental services contractor and Points Athabasca Contracting is a Saskatchewan-based civil and construction contractor with majority local Athabasca Basin Indigenous ownership, and over 20 years of successful operations in the region.

John Scarfe, Chief Executive Officer of Points Athabasca Contracting, said: “This partnership is a very exciting step for us and for our shareholder communities in the Athabasca Basin Region. Not only does it allow us to expand and add end-to-end construction projects to our portfolio but growing this partnership also helps provide opportunities for us to do what we do best: ‘Building Capacity’ for Indigenous people.”

The former Gunnar uranium mine and mill site is located on the north shore of Lake Athabasca, some 25 km south of Uranium City, Saskatchewan. The mine was operational from 1955-1963 and officially closed in 1964 with little decommissioning.

Due to the remote and isolated location of the site, numerous buildings (both industrial and residential) and facilities were developed. According to technical standards during that time, asbestos was widely used in all the buildings.

QM Points’ work will focus on waste rock cover construction; landfill construction; and general site remediation including installation of stainless steel mine closures, gamma radiation shielding covers over the general site, management of contaminated soils and rock and site-wide debris segregation and consolidation in appropriate landfills.

GR Engineering back for Boss Resources Honeymoon uranium project DFS

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Boss Resources says it has appointed GR Engineering Services Limited (GRES) as the engineering and lead study consultant for its Honeymoon uranium project definitive feasibility study (DFS).

GRES will quickly ramp up the DFS work programs, due to the significant package of advanced technical work Boss has completed since it obtained the Honeymoon uranium project in South Australia from Uranium One (Australia) in December 2015 and, specifically, since the completion of the prefeasibility study in 2017, Boss said.

Honeymoon is a former-operating mine fully permitted to produce 3.2 MIb/y of uranium for export (one of only four mines in Australia). Based on previous studies, it is expected to require $58 million to ramp up output to 2 Mlb/y, according to Boss. It comes with a 63.3 MIb U3O8 JORC resource.

Work completed to date at Honeymoon includes:

  • A scoping study in 2016 for the recommissioning and expansion of the Honeymoon project;
  • Prefeasibility Study in 2017 that further refined the proposed strategy;
  • Field leach trial (FLT) that demonstrated Boss Resources’ improved leaching approach and validated its proposed ion exchange (IX) process;
  • Test work that optimised the process through improved resin elution and precipitation optionality
  • Trade-off studies that identified the preferred IX equipment (NIMCIX selected) and further optimised the flowsheet by simplifying the process steps;
  • An assessment of the drying and packing facility to provide upgrade options available to Boss to meet the planned production profile, and;
  • A preliminary assessment of the work required for the existing plant and infrastructure to meet operation requirements of Stage 1 production.

The DFS is due for completion in November 2019, according to Boss.

Boss Resources Managing Director, Duncan Craib, said: “GRES is a leading engineering and consultancy firm that has delivered multiple mining projects of significant size and scale, both domestically and overseas.”

The appointment continues Boss’ relationship with GRES, which completed the Honeymoon scoping study in September 2016 and the prefeasibility study in May 2017.

The scope for the DFS is based on two stages. Stage 1 includes re-commissioning of the existing SX facility and infrastructure including the various modifications required to improve performance, rectify problems identified during previous operations and make preparation for Stage 2 expansion.

Stage 2 includes supplementing the existing SX facility using a parallel IX process along with the expanded yellowcake drying and packaging capacity and modified raffinate/ground water treatment plant all to produce 2 Mlb/y of U3O8 equivalent.

The company said: “Boss will produce a combined DFS for the Stage 1 – Recommissioning, and Stage 2 – IX upgrade to achieve 2Mlb per annum U308. The DFS will improve on the work done in the prefeasibility study and deliver a Class 3 cost estimate with appropriate detail to achieve an accuracy of ±15%.”

The DFS will report on the design of the leach patterns for the wellfields and associated production scheduling based on these patterns and summarise the test work carried out to date, Boss added. It will also provide updated mineral resource and report on progress made against the updated permits.

The preliminary schedule for the DFS indicates wellfield design will be completed by the end of July, with ion exchange and uranium precipitation piloting due to be finalised by the end of August. Stage 1 reporting is due to be completed at the end of September, followed by Stage 2 at the end of October and the final report by mid-November.

BHP and Bureau Veritas confirm heap leach viability for Olympic Dam

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BHP says it has successfully completed its heap leach research and development trial in South Australia, confirming the viability of the technology to extract copper, uranium, gold and silver at Olympic Dam.

The program began in 2012 and was conducted at a purpose-built, small-scale heap leach facility at Wingfield run by Bureau Veritas, under direction from BHP and with support from the South Australia Government.

BHP’s General Manager of Olympic Dam’s Surface Processing, Chris Barnesby, made the announcement at the Copper to the World conference in Adelaide on June 18.

“The promising results from this trial supports our positive outlook for Olympic Dam, given forecast demand increases for copper and the optionality we are building for this world-scale resource,” he said.

“We safely and successfully produced 19 t of good quality copper, most of which went back into the smelter and off to customers, though we kept a little to ourselves to commemorate the achievement.”

Despite the success of the project, Barnesby said the deployment of such technology was a “matter for future consideration”, explaining that there were many factors involved in making this decision, including “passing through our Capital Allocation Framework”.

He concluded: “As it stands today, we have confirmed the viability of a technology with the potential to join our suite of growth options. However, our immediate focus is on operating safely and reliably, and setting a foundation to unlock more value for BHP and for South Australia over the long term.”

Heap leaching works by drip-feeding acid through a large stockpile (or heap) of ore to leach out metals. BHP uses heap leaching at its copper operations in Chile, however Olympic Dam’s polymetallic properties require a different approach, according to the miner.

BHP said: “The research and development program has the potential to benefit the mining industry more broadly in South Australia, as heap leaching has the potential to deliver lower capital and operating costs, increased scalability, reduced potable water use and the ability to process lower-grade ores.”

Separate to the trial, BHP continues to progress studies on the Brownfield Expansion project, or BFX, as part of Olympic Dam’s resource development strategy, which seeks to potentially increase production to between 240,000-3000,000 t/y of copper.